Grupo Aval Acciones Y Valores Sa · BVC:GRUPOAVAL
Grupo Aval Acciones Y Valores Sa — FY2017 Earnings Presentation
26 slides from Grupo Aval Acciones Y Valores Sa's earnings presentation, Mar 23, 2018
Slide 1: Report of 4Q2017 and FY 2017 consolidated results
Report of 4Q2017 and FY 2017 consolidated results Information reported in Ps billions (1) and under IFRS (1) We refer to billions as thousands of millions.
Slide 2: Key highlights of 2017 results
• Consumer loans (including mortgages) grew at 8.0% yoy and corporate loans grew at 2.9%. Growth was impacted by as low economy and more stringent lending parameters. • Stronger growth in deposits helped improve the Deposit/Net Loan ratio. • Specific corporate credits (Electricaribe, SITP and CRDS)
Slide 3: Debt service coverage and leverage ratios
Debt service coverage and leverage ratios 4Q16 3Q17 4Q17 D 4Q17 vs. 3Q17 4Q17 vs. 4Q16 As of December 31 st , 2017 our combined double leverage (calculated as investments in subsidiaries at book value, subordinated loans to subsidiaries and goodwill as a percentage of shareholders' equity) was 1.16x
Slide 4: IFRS 4Q17 and FY 2017 Consolidated Earnings Results
1 IFRS 4 Q17 and FY 2017 Consolidated Earnings Results
Slide 5: Grupo Aval is an issuer of securities
2 Grupo Aval Acciones y Valores S.A. (“ Grupo Aval”) is an issuer of securities in Colombia and in the United States, registered with Colombia’s National Registry of Share s and Issuers ( Registro Nacional de Valores y Emisores ) and the United States Securities and Exchange Commission (“SEC”). As s
Slide 6: Consolidated key results for the year
3 Consolidated key results for the year Gross loans e xcludes interbank and overnight funds. Tangible Capital Ratio is calculated as Total Equity minus Goodwill and other Intangibles divided by Total Assets minus Goodwill and other Intangibles . PDLs 90+ defined as loans more than 90 days past due.
Slide 7: Key results by banking segment
4 COP$ tn 2016 2017 17 vs 16 Gross Loans $ 43.2 $ 46.3 7.3% Deposits $ 39.9 $ 44.4 11.3% Deposits/Net Loans 0.90 x 0.92 x 0.02 x Tangible Equity Ratio 9.3% 10.0% 75 bps PDLs 90+/Total loans 1.2% 1.2% 2 bps Cost of risk 1.9% 2.1% 16 bps Net interest margin 7.0% 6.6% (47) bps Fee income Ratio 34.8% 35
Slide 8: Macroeconomic context – Colombia (1/3)
5 1.0 2.0 3.0 4.0 5.0 6.0 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 2018E 2019E 2.5 3.0 GDP Growth Expectations (%) Source: Bloomberg Consensus Inflation Expectations (%) Macroeconomic context – Colombia (1/3) Source: Bloomberg Consensus
Slide 9: Macroeconomic context – Colombia (2/3)
6 Central Bank’s Monetary Policy 2% 4% 6% 8% Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Colombian Central Bank's Interest rate (EoP) DTF(1) IBR(2) 4.99% 4.50% 4.18% 1.6% 3.37% 4.50% 0% 3% 5% 8% 10% 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 Real GDP grow
Slide 10: Macroeconomic context – Colombia (3/3)
7 (2.3) (2.2) (2.2) (2.0) (1.9) (1.7) (1.5) (1.3) (1.1) (1.0) (2.4) (3.0) (4.0) (3.6) (3.1) (2.2) (1.6) (1.3) (1.0) (1.0) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Fiscal deficit as defined per fiscal rule Current and projected fiscal deficit Source: Bloomberg and DANE So
Slide 11: Macroeconomic context – Central America
8 3.9% 5.6% 4.4% 3.8% 3.5% 3.8% 2.2% Central America* Panama Nicaragua Costa Rica Guatemala Honduras El Salvador Promising Growth Outlook – Real GDP CAGR ’16 – ’19E Inflation per Country Central Banks’ Interest Rates Macroeconomic context – Central America Source: Bloomberg CR : Costa Rica, ES: el S
Slide 12: Assets
9 Assets Assets Breakdown Total Assets Figures in Ps. Trillions (1) Foreign operations reflect Central American operations. (2) Net loans and leases include interbank and overnight funds. 224.1 228.1 236.5 4Q16 3Q17 4Q17 4Q17 / 4Q16 = 5.6% 4Q17 / 3Q17 = 3.7% 4Q17 / 4Q16 = 5.7% 4Q17 / 3Q17 = 3.2% Gro
Slide 13: Loans and receivables
10 151.6 155.4 159.1 4Q16 3Q17 4Q17 4Q17 / 4Q16 = 4.9% 4Q17 / 3Q17 = 2.4% 4Q17 / 4Q16 = 5.1% 4Q17 / 3Q17 = 1.9% Growth excl. FX movement of Central American Operations Loans and receivables Gross loans Gross loans Breakdown Figures in Ps. Trillions – Excluding interbank and overnight funds % Growth
Slide 14: Loan portfolio quality
11 Loan portfolio quality 0.87x 0.69x 0.67x 4Q16 3Q17 4Q17 Charge offs / Average +90 PDLs 2.8% 1.4x 1.2x 1.3x 1.0x 0.8x 0.9x 4Q16 3Q17 4Q17 Allowances / 90+ PDLs Allowance / 30+ PDLs 3.4% 3.5% Allowance / Gross loans 2.96% 3.98% 3.89% 1.95% 2.71% 2.75% 4Q16 3Q17 4Q17 30 days PDLs / Total loans 90 da
Slide 15: Loan portfolio quality by loan type
12 4Q16 1Q17 2Q17 3Q17 4Q17 Initial PDLs 4,432 4,484 5,393 5,843 6,182 New PDLs 678 1,537 1,090 1,032 735 Charge-offs (627) (629) (640) (693) (722) Final PDLs 4,484 5,393 5,843 6,182 6,195 Loan portfolio quality 4Q16 3Q17 4Q17 4Q16 3Q17 4Q17 Commercial 2.1% 3.4% 3.2% 1.8% 2.8% 2.8% Consumer 4.4% 5.1
Slide 16: Funding
13 Funding Figures in Ps. Trillions 4Q16 3Q17 4Q17 Others 0.2% 0.3% 0.3% Time deposits 40.3% 42.8% 40.4% Checking accounts 24.3% 21.6% 23.3% Savings accounts 35.1% 35.2% 36.0% Total deposits 4Q17 / 4Q16 = 7.6% 4Q17 / 3Q17 = 5.4% 143.9 146.9 154.9 Deposit composition 4Q17 / 4Q16 = 7.8% 4Q17 / 3Q17 =
Slide 17: Capital
14 Capital Attributable Shareholders Equity Attributable Equity + Minority Interest Figures in Ps. Trillions Consolidated Capital Adequacy of our Banks (%) 4Q16 3Q17 4Q17 Minority interest 9.1 9.3 9.6 Attributable equity 15.6 15.9 16.3 4Q17 / 4Q16 = 4.9% 4Q17 / 3Q17 = 2.7% 24.7 25.2 25.9 15.6 15.9 1
Slide 18: NIM – Net Interest Margin (1/3)
15 NIM – Net Interest Margin (1/3) Composition of Interest Earning Assets Composition of funding Calculated as composition of average balance for the period. Non - Financial Sector + HoldCo refers to companies from the non financial sector and the sum of Grupo Aval Acciones y Valores S.A. + 100% own
Slide 19: NIM – Net Interest Margin (2/3)
16 7.1% 7.2% 7.2% 7.2% 7.2% 6.7% 7.1% 7.2% 7.2% 7.1% 6.0% 6.5% 7.0% 7.5% 4Q16 1Q17 2Q17 3Q17 4Q17 Financial Sector Consolidated NIM – Net Interest Margin (2/3) Average Yield on Loans Average Cost of Funds Average Spread (Yield on Loans – Cost of Funds) 11.9% 11.6% 11.5% 11.2% 11.0% 11.7% 11.7% 11.6%
Slide 20: NIM – Net Interest Margin (3/3)
17 5.9% 6.1% 6.3% 6.1% 6.1% 5.5% 5.9% 6.1% 5.9% 5.9% 4Q16 1Q17 2Q17 3Q17 4Q17 NIM – Net Interest Margin (3/3) Net Interest Margin (1) Loans Interest Margin (2) Net Investments Margin (3) 4Q16 3Q17 4Q17 4Q17 / 4Q16 4Q17 / 3Q17 2.4 2.7 2.8 15.1% 1.0% Net interest income(1) (trillions) (1) Net Interest
Slide 21: Fees and other operating income
18 Fees and other operating income Figures in Ps. Billions (1) Includes income from trading and hedging derivatives reflected as part of the net trading income on the Statement of Profit or Loss. (2) Includes equity method income, dividend income and other income . Other operating income 71.0% 73.9%
Slide 22: Efficiency ratio
19 Efficiency ratio 52.2% 46.8% 46.3% 4Q16 3Q17 4Q17 FY16 47.3% FY17 46.5% 3.8% 3.5% 3.6% 4Q16 3Q17 4Q17 FY16 3.5% FY17 3.5% Efficiency Ratio is calculated as personnel plus administrative and other expenses excluding wealth tax divided by net interest income plus net trading income, other income an
Slide 23: Profitability
20 458.4 437.9 466.7 4Q16 3Q17 4Q17 Net income attributable to controlling interest $20.6 $19.7 $20.9 EPS $29.0 645.3 Profitability (1) ROAA for each quarter is calculated as annualized Net Income divided by average of total assets . (2) ROAE for each quarter is calculated as annualized Net Income a
Slide 24: Guidance for 2018
21 Guidance for 2018 • GDP of 2.25% - 2.50% in 2018 versus 1.8% in 2017 • 1H18 can be impacted by volatility due to the presidential elections • Inflation in 3.5% area • Central Bank rate cycle should be over (max. 1 additional cut to 4.25%) • Compliance with Fiscal Rule (target of fiscal deficit fo
Slide 25: Grupo Aval
Grupo AVAL
Slide 26: Appendix: Key results of the 4Q17
23 Appendix: Key results of the 4Q17 Gross loans e xcludes interbank and overnight funds . Tangible Capital Ratio is calculated as Total Equity minus Goodwill and other Intangibles divided by Total Assets minus Goodwill and other Intangibles . NPL defined as loans more than 90 days past due . Net In
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